Aust. prime rates

Press, 27 June 1983, Page 24

Aust. prime rates

Westpac Banking Corporation, the National Australia Bank, and the Australia and New Zealand Banking Group have become the first banking houses to join the move toward higher interest rates within Australia. The banks announced an increase in their prime rate of one percentage point to 16 per cent, a move they attributed to tightening of liquidity in the past month. The rate applies to the banks’ best quality corporate customers for overdrafts of ?AustIOO,OOO and

more. The announcements come after increases of up to one point for its lenders by Westpac’s finance subsidiary, Australian Guarantee Corporation, Ltd, making a top rate of 14.75 per cent. A spokesman for the Commonwealth Trading Bank said the bank’s prime rate was under review. National Australia’s managing director, Jack Booth, said the increase “reflects tighter liquidity conditions caused by capital outflow in recent weeks in response to ovsseas interest rates and

a strong U.S. dollar, some continuing level of tax payments and payments for the recent bond tender." The Australia and New Zealand Banking Group, Ltd, announced that it will raise its prime lending rate on loans of more than sAustloO,ooo to 16 per cent from 15 per cent, effective today. The increase results from substantial rises in other market rates and a sharp increase in the cost of acquiring and retaining large deposits in recent weeks, the B(ink said.